LIFEWAY FOODS INC (LWAY)
US5319141090 - Common Stock
Taking everything into account, LWAY scores 7 out of 10 in our fundamental rating. LWAY was compared to 93 industry peers in the Food Products industry. LWAY gets an excellent profitability rating and is at the same time showing great financial health properties. LWAY is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, LWAY could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year LWAY was profitable.
In the past year LWAY had a positive cash flow from operations.
Each year in the past 5 years LWAY has been profitable.
LWAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LWAY (13.92%) is better than 94.57% of its industry peers.
Looking at the Return On Equity, with a value of 18.81%, LWAY belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.46%, LWAY belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
LWAY had an Average Return On Invested Capital over the past 3 years of 7.97%. This is in line with the industry average of 7.83%.
The last Return On Invested Capital (15.46%) for LWAY is above the 3 year average (7.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 18.81% | ||
| ROIC | 15.46% |
ROA(3y)6.63%
ROA(5y)5.2%
ROE(3y)9.14%
ROE(5y)7.08%
ROIC(3y)7.97%
ROIC(5y)N/A
1.3 Margins
LWAY has a better Profit Margin (7.10%) than 73.91% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
Looking at the Operating Margin, with a value of 10.62%, LWAY is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
LWAY's Operating Margin has improved in the last couple of years.
The Gross Margin of LWAY (26.51%) is better than 64.13% of its industry peers.
LWAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 7.1% | ||
| GM | 26.51% |
OM growth 3Y30.24%
OM growth 5YN/A
PM growth 3Y31.28%
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LWAY is creating some value.
The number of shares outstanding for LWAY has been increased compared to 1 year ago.
Compared to 5 years ago, LWAY has less shares outstanding
The debt/assets ratio for LWAY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.07 indicates that LWAY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.07, LWAY belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
The Debt to FCF ratio of LWAY is 0.22, which is an excellent value as it means it would take LWAY, only 0.22 years of fcf income to pay off all of its debts.
LWAY's Debt to FCF ratio of 0.22 is amongst the best of the industry. LWAY outperforms 95.65% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that LWAY is not too dependend on debt financing.
LWAY has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. LWAY outperforms 83.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 12.07 |
ROIC/WACC1.73
WACC8.96%
2.3 Liquidity
A Current Ratio of 2.30 indicates that LWAY has no problem at all paying its short term obligations.
LWAY's Current ratio of 2.30 is fine compared to the rest of the industry. LWAY outperforms 75.00% of its industry peers.
LWAY has a Quick Ratio of 1.75. This is a normal value and indicates that LWAY is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.75, LWAY belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
LWAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 377.78%, which is quite impressive.
LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.23% yearly.
The Revenue has grown by 13.08% in the past year. This is quite good.
The Revenue has been growing by 9.14% on average over the past years. This is quite good.
EPS 1Y (TTM)377.78%
EPS 3Y58.23%
EPS 5YN/A
EPS growth Q2Q166.67%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y16.22%
Revenue growth 5Y9.14%
Revenue growth Q2Q17.74%
3.2 Future
The Earnings Per Share is expected to grow by 32.60% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.24% on average over the next years. This is quite good.
EPS Next Y42.93%
EPS Next 2Y32.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.87%
Revenue Next 2Y10.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
LWAY is valuated rather expensively with a Price/Earnings ratio of 21.43.
64.13% of the companies in the same industry are more expensive than LWAY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.15. LWAY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.79, which indicates a correct valuation of LWAY.
LWAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LWAY is cheaper than 77.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. LWAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LWAY is valued a bit cheaper than 61.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LWAY is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
LWAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LWAY may justify a higher PE ratio.
LWAY's earnings are expected to grow with 32.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y32.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LWAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIFEWAY FOODS INC
NASDAQ:LWAY (5/17/2024, 7:11:43 PM)
After market: 18.4 -0.03 (-0.16%)18.43
-0.78 (-4.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap270.74M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 13.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 18.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.62% | ||
| PM (TTM) | 7.1% | ||
| GM | 26.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)377.78%
EPS 3Y58.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y42.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.08%
Revenue growth 3Y16.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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